PROFIT AND LOSS ACCOUNT.

Press, Volume LIX, Issue 17702, 2 March 1923, Page 9

PROFIT AND LOSS ACCOUNT.

FOR YEAR ENDED D ECEMBER 31st, 1322.

£ s. d £ s. d. To Marias Freights 88,666 7 10 Royalty ... 2,34719 10 Distributing: Expenses •• 42S 5 0 Interest and Exchange .. 2,160 8.11 Directors' Fees 600 0 0 Income Tax 554 1.1 7 Salaries, General Expenses, Auditor, Travelling ,' Expenses, Advertising, eto. 8,759 .4 8 Brought forward 951 "44 Profit for year 7,823 1 6 . . 8,274 5 10 £56,791 6 8

Balance at credit, Slst December, 1321 .. .. 931 4 i Balance from Cool- Account 53,435 8 \ Transfer Fsea 7 5 0 Commissions, dieoounis, etc 537 9 3 .._. _j_ £56,791 6 8

Wli EEECE, G-. TOTVNSEND, F.1.A., K.Z., . JAMES JAMIESOI7, - Ee S- Ac s-'*,~ Directors. Secretary. I have examined the "books and vouchers of the Westport-Stockton Coal_ Company, Limited, and certify tie above Balance-sheet is properly drawn up, and exhibits a. true and correct view of the Company's affairs as shown by the. books of the Company, and that' all my. requirements aa Auditor hare been complied ■with. W. S. GODFEET,'F.LA. (N.Z.), F.P.A., 1 ■ . Auditor.

Chrifitcliurch, Ist February, 1923. In moving the adoption of the report and balance-sheet, the chairman said: : Whilst the results of the past year are a considerable improvement' on those of the previous year,. I regret sufficient profit has not been m'u-'o to | provide a dividend on the ordinary shares. On reference to the balance-sheet you will find that the Property Account is less by £653; there is also an increase iu sundry, debtors of £3,277, "being accounts owing to the Company, which will be paid in due course. The aniodnt £G'Juo is balance owing by miners <-n houses purchased by them from the Company, and is less by £607. The item £3700 coal stocks is for coal at the bins, which has accumulated to that amount. ■ On the liability side you will note the item Bank of New South Wales £5254; this was only temporary, and was liquidated a few days after the balance date. Sundry creditors is less by £4423. The Profit and Loss Account shows several items at much less figures, as was to be expected by the lower output and reduced freight, marine freight being less by £15,090, other items being much the same as last year. On the credit side the balance from Coal account, is £14,367 less than last year s owing to the increased cost per ton ox reduced output,. a reduction in" the selling price", and the result of_ a, strike lasting about six weeks, which was settled eventually by the arbitration of a special Committee set up to decide the question in dispute. The year at the mine has been an exceptionally busy one se- far as velopment work is concerned. We have' opened up the Matapo seam, which entailed a, good deal of work, but which has turned out as anticipated, and promises to be a great asset to the Company, as the coal is very hard and of excellent quality. There have also been opened up two other sections, both promising good results; a fourth is situated at the southern end of D section, which it_ will be remembered was temporarily abandoned in the early stages, and which is being connected to the main transit system by water carriage. You will ask, naturally,' what is the cause or necessity for all this development work when there is coal available to supply the present demand. I will tell you. There is a portion of the present transit system which is very expensive to run, and before incurring any expenditure in making any changes, the directors determined to prove further what the Company had in its field, and having done.this to their satisfaction, they now propose to make the change, which I will now explain. Before definitely deriding on what the change should he on the section which cost so- much to run, fall enquiries were made as to the cost and efficiency of both the wire Tope and the water fhrme systems; the former would have entailed the outlay of a large amount of capital, and whilst some saving would bare Jbeea efierted in H»

working costs, the advantages of a waterTllume system have, after very, close investigation, impreesed the direcr tors so much that, if the one mile, m-j stallation now being made proves all' that is expected, si length of about four miles in the main transit system will be made, cutting out the use of lower-; ing. by electric locomotives on steep grades,' also the two lower inclines. You will ask, no doubt, why a method so simple and economical has not been used for coal carriage hitherto; in- the first place it is necessary to have th© coal suitably situated, then you must have sin- ample water supply, and, lastly, you must have suitable grades. Although flumes have been used in.New Zealand for years in gold mining, nothing is known of its use for coal transit ex-< cep't in a very small way. > _ Attention was drawn to th© possibilities of this system on the report appearing in New Zealand of a successful installation in America. Since then, two mines in Keefton, notably that managed by Mr Alborn-, have successfully used th© system ; in tfiis case the flumo is four miles, in extent. I will now refer you to the map, and endeavour to make clear to you what it is- proposed to do. - The chairman then fully defined the points of development work and the alteration proposed to be made in tho transit system, and then- went on to aay that it might be supposed that the new Bystom would result in the disuss of a lot of plant; this-was not so to any extent, a? the tramway would! always be required to take up the men to work and cany mining materials, and the power now being produced would be required to run tho mine and other machinery; in fact, if the system was not introduced tho company would have to instal new plant, costing as much as the flume, to find power as the mine wording grew further away.' There is another very important factor in' the flumo system, which is that the coal will bo thoroughly washed and many impurities removed, thus making tha product much more desirable, especially for gas making. In conclusion, I feol justified in Baying that the, prospects of the company s\to better than they have ew&r been, because we have not now t6 assume that a certain area of coal exists: we know, and wo have at last the prospect of reducing our producing costs, and being able, when necessary, -to meet all competition, both as to quality and price. I now move the adoption of the report and balance-sheet. Mr J. Jcmieson Beeoricled the adoption of the report and balance-sheet. Mr Osborne asked what th* flume was composed of, wood or iron. The Chairman: Timber, because our water on the West Coast is frequently very <icid and 1 corrodes iron, ea that we propose to do what tho Americans have done, and put r.n iron lining inflide the wooden flume, wlusjh, may, easily bo replaced. Mr Osborne: On the golufields, sending down .crushed reck, tho wear is very severe on the flume. Chairman: But coal is lighter than rock, and it has been shown in America that the wear is not appreciable. We have the timber over there, and where wear occurs it can be repaired at. slight cost. The expense will bo caxefiv in the tunnel we have to put

through, and receiving bins at the' hot* torn. There is another advantage itt this scheme; one of tho greatest; troubles affecting New Zealand coal for gas purposes' is sulphur, and in tho process of coming down the flumo tho sulphur (pyrites) being heavier Trill wash to tho bottom of the Hume, leaving the coal cleaner. So we will not oniy carry our coal, but improvo it very considerably. Mr Seay: The chairman has explained the saving from the flume Bystoin; what will bo tho cost of the proposed main four-mile flume! Chairman: The cost of tho installation on tho route laid down by Mr Leiirmont. including tunnel, bins, and flume, is under £IO,OOO, or about tho amount wo should save in one year. We are in hopes that wo may arrive at a shorter route; this is problematical, but we aro making further surveys to determine that point. It is rough country, hilly, high, and in parts covered with bush. Mr Brown: To what extent would it cheapen the price of our coal to produce? Chairman: A considerablo saving is certain, but it would dopend entirely upon tho output. Mr Brown mado enquiries regarding the cost of production, and some items in the balance-sheet, which were replied to by the chairman. A shareholder: What effect on our business will tho tunnel make, bringing coal from Grevmouth and Keefton by railt The chairman did not anticipate thai | tho demand for Westport coal would b« affected. The adoption of the roport and bal-ance-sheet was then put to the raootinj and carried unanimously. Tho next business was the election of two directors.. Mr Brown said that, in his opinion, tho number of directors might be profitably reduced from seven to three, and he moved in, that direction. , The chairman stated that ho could not accept the motion. Mr Seay moved, and Mr Engolbreehfc seconded, that the retiring directors, Dr. Levinge and Mr J. P. Newman, be re-oloctcd.-—Carried. Mr Brown movod, and Mr LeCreu seconded, that tho auditor, Mr W. S. Godfrey, bo re-appointed on tho same terms aa last year.—-Carried. Dr. Farr moved 'a hearty vote of thanks to the directors and Btaff for their work during tho year, dwelling on the loyalty of the staff in trying times. Mr Seay seconded this, especially thanking the chairman for the clear exposition of the new • development work carried out, and tho flume proposals, which waa educational as well as showing the amount of work that had been done.—Carried. , The chairman, in returning thanks, Said that the question of transit had been exercising tho minds of tho directors for many years, and'now they wero satisfied that the flume system was going to be a success. By putting in the mile of fluroo they Would ascertain the extent of the water ■ supply, the effect on. the coal- of being carried, and on the flume of the coal beinj carried, and in three-or four monthi. they would be in a position of having definite, information on all theso points. He hoped that by next year, with improved trade, they would bo able to meet the shareholders under much happier auspiceß. The secretary replied on behalf of the staff at Ngakawau, Westport, and Head Office. [Extended report published by arrangement.]